In India, the agent and principle share a relationship that is contractual in nature, and therefore it is governed by the terms and conditions of the contract between them. Chapter X of the Indian Contract Act, 1872 provides the basic structure of rules and regulations that basically govern the performance and formation of any type of contract including the agency contract. In agency contracts, there exists a legal relationship between two people whereby one person acts on behalf of the other.
The person acting on behalf of the other is called an agent, and the person from whom the agent derives authority to act is called the principal. The law of agency is based on the Latin maxim “qui facit per alium, facit per se,” which means, “he who acts through another is deemed in law to do it himself“. Agent and principal are defined under Section 182 of the Indian Contract Act, 1872. According to the section “an agent is a person employed to do any act for another or to represent another in dealings with third persons. The person for whom such act is done, or who is so represented, is called the principal”.
The competent agent is legally capable of acting for the principal vis-à-vis the third party. Now who can become an agent? Section 184 answers this question. According to this section any person can become an agent i.e. there is no need to have a contractual capacity to become an agent. Therefore, a minor can also act as an agent. But the minor will not be responsible to his principal. Different types of commercial agents have been identified under Indian law like brokers, auctioneers, del credere agents, persons entrusted with money for obtaining sales and insurance agents.
By – Shradha Arora
(Editor @ Legal Bites)